Friday, April 17, 2009

Impact on Economic Systems

Market Economy
In a market economy, the country’s citizens and businesses guide the economic decisions and pricing of goods and services. There is little government intervention in a market economy. In a market economy, individuals own their own businesses, which can be farms and factories. Child labor is common because owners choose to hire children over adults because children are more affordable. Since the government does not play a role in the market economy, the children are often unnoticed.

Command Economy
In a communist command economy, the government sets all limits to supplies and prices. This impacts child labor because if the minimum limit for supplies is unmet, the government must take alternatives, like child labor.


Shaw, Jayanta. Child Labor Banned in India. Dec. 2000. India, Raichak.

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